IBM Storage Hardware

On January 18, IBM announced that fourth quarter revenue increased by 2% over last year’s fourth quarter results. The steady increase represents a positive trend for IBM, who reported their fourth quarter results as well as fiscal year results last week.

Software Revenue Boosts Total IBM Storage Sales

Sales of IBM storage software were the driving force behind IBM’s fourth quarter profits. IBM storage software witnessed 30% growth over last year’s results, led by Websphere, Tivoli, and Information Management software products that experienced double-digit growth.

IBM storage hardware, however, did not fare as well. Revenue for IBM’s systems and technology business decreased by 8% from a year ago as revenue levels reached $5.8 billion. Contributing to the drop in revenue is a 1% decrease in storage sales from 2010 as well as a 31% decrease in System Z mainframe servers from the previous year.

Loughridge, senior vice-president and CFO at IBM, said that comparisons to 2010 storage hardware sales are difficult because of the record-setting growth in mainframe sales that occurred the previous year.

Despite the decrease in storage sales, the combination of IBM and storage and software sales was up 5% for 4Q11, reaching almost $19 billion in sales and up 5.6% year-over-year.

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